Dallas Fort Worth Insurance Lawyer Blog
Here is a 1997, Waco Court of Appeals opinion that discusses an issue related to changes to the named beneficiary because of “undue influence.”
T.J. Clark could not read or write. He relied upon Cobb, his wife’s niece, to take care of his financial affairs for over 20 years. Clark’s will provided for the remainder of his estate passing to Cobb. Additionally, Cobb was the beneficiary of three life insurance policies. Over time, Clark expressed concerns about his niece, Justice, and complained about how she bothered him about his will. When Clark was close to death from prostate and lung cancer, he was provided morphine. Additionally, he required oxygen from a tank to help him breathe. In the last few days of his life, Justice was able to secure a change in beneficiary under the will, as well as a change of beneficiary under the life insurance policies, substituting her for Cobb. A jury found that Justice unduly influenced Clark to change his will and life insurance beneficiary designation. The trial court awarded a judgment notwithstanding the verdict, and Cobb appealed claiming the trial court erred in finding no evidence of undue influence, as well as its finding that the finding of undue influence with regard to the life insurance beneficiary designation was immaterial.
The judgment of the trial court is reversed and the case remanded for entry of judgment in favor of Cobb. The factual circumstances of the case as a whole revealed that Justice unduly influenced Clark to change his will and life insurance beneficiary designation. A former beneficiary may bring suit to contest a change his will and life insurance beneficiary designation. A former beneficiary may bring suit to contest a change in beneficiary on the basis that the change was accomplished as a result of undue influence exerted against the insured. Equity may entertain jurisdiction on the suit to set aside a change and to enjoin the payment of the policy to the substituted beneficiary. The original beneficiary may also sue the second beneficiary for damages, or charge the second beneficiary as constructive trustee of the proceeds.